Payday loans in Alabama are like cash advances anywhere else with certain rules applied to them. These are short-term loans for quick cash in an hour of need. Consumers must remember that these loans are meant to meet short-term goals and should not be used for long-term goals.
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A consumer can choose to go for this cash advance as it is easy to apply and get, it usually takes a few hours to get the process completed and have the money you need. Another advantage is that the credit score is usually not considered as a criterion for lenders for this fast cash loan, your monthly paycheque is the priority criteria checked by lenders.
In 1999 Alabama was one of the 19 states in the United States that were involved in legislating small loans. In 2002 however, most of these legislations were scraped and now payday lenders do not fall in the small loan category and are able to run their businesses without any issues in Alabama.
Online payday loans for bad credit can be availed from storefronts or online, as both are legal in Alabama. The state government regulates this industry with a set of rules and regulations through the State banking department. They describe all the relevant provisions on payday lending in the state. Some of these rules are defined further:
- Loan amount – Maximum loan amount can be 500$, however, there is no specific minimum limit.
- Tenure – Tenure can fall in the range of 10 days to 31 days.
- Cost – The maximum finance charge cannot exceed 17.5%. Example: if you borrow 100$, then you will payback 117.5$.
- Annual Percentage Rate – based on above information the APR will amount to around 456% on a 100$ loan.
- Borrower check – The borrower must be permanently employed or at least have a permanent source of income. Must be 18 years of age and must be a permanent citizen of the United States.
- The Number of loans – A borrower can have only a single payday loan at any given time
- The Number of rollovers – One. If a borrower is unable to repay a loan, they are allowed to roll it over once. There is a monthly charge of 3% in case of defaulting on payment. Alabama also defines a cool off period of one business day if a consumer has paid off two continuous loans.
- Repayment plan – A Repayment plan must be established with the terms of lending. Borrowers must pay the amount and finance charges back in one lump sum.
- Non-Sufficient Funds – If a consumer does not have sufficient funds in their account, the lender may charge a 30$ fee.
Consumers should be aware of any lenders not complying with the rules stated above the borrower must contact and inform The State banking department of Alabama. Consumers should understand the rules and regulations behind these loans, by gaining this knowledge of the process, local laws and regulations, pros and cons, the consumers can protect themselves and get the best out of these short-term loans.
There are various payday lenders available in Alabama, we have listed some of them for you below:
- Check into cash – Direct Lenders, online and store.
- Loan by Phone payday lenders – Apply online or by phone.
- CashNet USA – Large online lender.
There are many more payday lenders available online, you should always compare multiple options and check which of them most satisfies your need.